FAQS

What happens to student loans in Chapter 13 Bankruptcy?

Your student loan can be paid with no interest as part of the payment plan. This is only accurate for Chapter 13 bankruptcy and not Chapter 7.

In a Chapter 13 payment plan, is credit card debt included?

In order for an individual to file under Chapter 13, repayment of all secured creditors before debts in its entirety must be completed. A part of the amount that is owed to unsecured creditors must also be paid.

What happens to my business when I file Chapter 11?

Your business remains open and protected by the automatic stay.

How long does Chapter 11 take?

Traditional cases take months; Subchapter V can resolve in 3–6 months.

Do I lose control of my company?

No. You stay in full control as the Debtor in Possession.

Can it stop eviction or foreclosure?

Yes. Filing immediately stops these actions.

What types of businesses qualify?

Nearly all — from small sole proprietorships to large companies.

Will Chapter 11 eliminate all my debt?

It restructures debt into manageable payments and may reduce secured debts.

Chapter 11 vs. Chapter 13?

Chapter 13 is for individuals with limited debt; Chapter 11 is for businesses.

How do I know if Chapter 11 is right?

If the business has value and needs time to reorganize — it likely is.

What Is The Concept Of Bankruptcy?

The bankruptcy process is the mechanism that is developed in federal court following bankruptcy laws established in the United States, to protect and assist individuals or businesses in solving problems of payments to other institutions known as creditors.

What is Chapter 7 And How Does It Work?

Chapter 7 is part of the bankruptcy law that allows for a person to discharge specified debts by filing a case in the bankruptcy court, turning over all non-exempt properties and assets to a court appointed trustee, and following the rules set by the court. A person who files for a Chapter 7 bankruptcy is called a debtor.

Who Are The Ideal Candidates For Chapter 7 Discharge Bankruptcy?

Someone who qualifies for a Chapter 7 bankruptcy meets certain criteria. Any person whose current income is sufficient to repay a large portion of his or her debts should not file for Chapter 7, as the court may dismiss the case as an abuse of Chapter 7. In addition, if you have previously filed a bankruptcy within a certain period of time, or if the court believes you are committing fraud against your creditors, you will not be able to file a Chapter 7 bankruptcy. It is important to contact our bankruptcy lawyers. They can help you recognize if you are a good candidate for Chapter 7.

Who Is Not Eligible For A Chapter 7 Discharge?

If an individual discharged debt under a Chapter 7 bankruptcy within the past eight years or under a Chapter 13 bankruptcy within the past six years, then the debtor is ineligible for Chapter 7. If a debtor failed to meet the credit counseling requirements, the individual will not be eligible to file Chapter 7. In addition, if the debtors income is high enough to repay a portion of their debt, he or she will not be able to file.

Before I Declare Bankruptcy Through Chapter 7, Should I Meet Any Requirements?

Before you file bankruptcy, you must complete a credit counseling course pre-approved by the bankruptcy court, including 180 days of bankruptcy petition, and present evidence to the court that the course has been passed. There are free agencies in Miami for credit counseling. You can contact Gallardo Law Offices for more information on credit counseling.

What Are The Consequences Of Chapter 7?

Chapter 7 eliminates almost all debts, but there are some that remain after the bankruptcy discharge, such as:

• student loans, fines due to government agencies, child support and spousal support or alimony debts.

Where is a Chapter 7 case filed?

Chapter 7 cases are filed in the office of the clerk of the Bankruptcy Court in the district where the debtor resided or maintained a place of business for the larger portion of the 180 days prior to filing.

Should I Stop Using Credit Cards Before Filing For Bankruptcy?

You must stop using credit cards if you are considering filing bankruptcy. The judge presiding over your case will review all of your debts and can establish recent purchases as fraudulent activity.

Can I Get Credit After Setting Chapter 7?

Yes, you can get new credit cards. You will be able to restore your credit again long before you finish the set payments; you only need the approval of the bankruptcy court. In some cases, it might happen that the interest on loans is higher due to a bankruptcy. You can find more information in our website www.GallardoLawFirm.com, in the section on credit and bankruptcy.

Are Husband And Wife Able To File Jointly Under Chapter 7?

Yes, they may, using the same set of forms.

When Should A Husband And Wife Both File Under Chapter 7?

Husband and Wife should file jointly if some of the debts are owed by both. If both spouses are listed for any of the debt and only one of them files for Chapter 7, creditors may attempt to collect payments on those debts from the spouse that did not file bankruptcy.

May Employers Or Government Agencies Discriminate Against Persons Who File Under Chapter 7?

It is illegal for any employer, either public (government) or private, to discriminate against a person in regards to employment if that person has filed for Chapter 7 bankruptcy. It is also illegal for any government agency to discriminate against a person when seeking any license, permit, or any similar documentation because the person seeking such documents has filed for Chapter 7 Bankruptcy.

Will A Person Lose All Of His Or Her Property if a Chapter 7 is filed?

Under federal law, certain properties and assets can be declared exempt and cannot be seized by creditors. A debtor may keep exempt property. It is only necessary for a debtor to turn over non-exempted property to the trustee.

What Is A Trustee, And What Do They Do?

A trustee is a court appointed officer responsible for gathering a debtors nonexempt property, selling it, and using the funds received to pay off creditors. The trustee also has certain administrative duties, including the responsibility of making sure debtors follow through with the obligations in their bankruptcy case.

How Long Does A Chapter 7 Case Last?

The length of a Chapter 7 Bankruptcy case depends on how the trustee takes to gather and sell a debtors assets, and perform his other case duties. If the debtor has no assets or property determined to be nonexempt for the trustee to gather, the case will more than likely be closed soon after a notice of discharge is received by the debtor.

What is the Law of Fair Debt Collection Practices?

Act Fair Debt Collection Practices (FDCPA) allows you to take legal action against debt collectors who illegally intimidate you, call you at odd hours, make false allegations about debts, and any other acts prohibited by law.Â

What are you not obliged to do in regard to collectors?

You do not have to argue anything with a collector unless you want to. You are not mandatory to answer the phone. You are not mandatory to talk to a collector. You are not mandatory to answer questions of collection. You do not need to tell the truth about your financial affairs. It is necessary to recognize that you owe money. This is very important if you are claiming an old debt. If you recognize the debt, this could actually extend the length of time that the collector can be sued for it.

What benefits can I get for damages and prejudices according to the FDCPA?

You can receive up to $ 1,000 per case. You can sue for statutory, punitive and actual damages for stress-related injuries and others.

Are there laws that protect me against creditor harassment?

Yes, Many of these attacking and ruthless companies call to tell your employer about your debt, use putrid language, threaten to put him in jail or claim to be a police officer or Federal employee. All these actions are illegal and violate the FDCPA.

What are the hours that the creditors cannot be calling?

A creditor may only contact you between the hours of 8:

• 00am and 9:00pm.